Brokerage firm CLSA has upgraded Dalmia Bharat's rating to ‘buy from 'outperform’ and raised its target price to Rs 1,900 per share from Rs 1,650 earlier. As per the brokerage, large capacity additions in the pipeline, a presence in strong growth regions, and news flow of price hikes in the east, Dalmia Bharat is well-placed in this upcycle, at current valuations.

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“The Supreme Court released the mutual fund securities (Rs 344 crore) of Dalmia, in its favour. While Dalmia has to furnish a bank guarantee in lieu of that, it can now utilise these units at its own discretion. We believe this may allay concern around the stock and lead to a bridging of its valuation gap with peers,” stated the CLSA report.

The stock soared over 11 percent in intraday trade post the development to hit its 52-week high of Rs 1,690.60 on the BSE.

On March 16, the Supreme Court ordered IL&FS Securities Services (ISSL) to release mutual fund units worth Rs 344 crore to Dalmia Bharat. Today (March 17), stocks of the company surged 11 percent to Rs 1,690.60 in intra-day trade, hitting a record high on the BSE.

In February 2019, Dalmia Group had alleged that these instruments — valued at approximately Rs 344 crore — were illegally transferred from the Demat accounts of two of its subsidiaries. A month later, in March, the company registered an FIR with the Economic Offences Wing (EOW) of Delhi police, claiming that Allied Financial Services, Money Mishra Overseas, National Securities Depository, and ISSL had duped them of their securities.

In August the same year, the Supreme Court passed an interim order that Dalmia Cement — a subsidiary of Dalmia Bharat — may encash the securities and the said amount shall lie in fixed deposit with ISSL. Dalmia did not exercise the option and, so, ISSL continues to hold these mutual fund units.